*Below are the drop down menus for Requirement 2 Data Table 1 Joe\'s Beach Hut s
ID: 2545048 • Letter: #
Question
*Below are the drop down menus for Requirement 2
Data Table 1 Joe's Beach Hut sells three types of cold drinks: 1. Licious -Ade in 12-oz. cans for $1.35 per can 2. Licious -Ade in 20-oz. bottles for $1.70 per bottle 3. Right-Cola in 20-oz. bottles for $2.35 per bottle Joe's Beach Hut pays its suppliers .$0.40 per 12-oz. can of Licious -Ade 2. $0.50 per 20-oz. bottle of Licious-Ade 3. $0.70 per 20-oz. bottle of Right-Cola Joe's Beach Hut's monthly fixed costs include Hut rental Refrigerator rental Joe's salary Total fixed costs 390 80 1,700 $2,170Explanation / Answer
1. The constraining factor is - Linear feet of shelf space.
Explanation: Since, he can sell all the drinks stocked in display case, liner feet of shelf space is the only constraining factor which decides how many drinks will be ut on display.
2. Particulars licious ade 12 oz liciousade 20oz right cola 20 oz
Sales pric per unit $1.35 $1.70 $2.35
Variable cost per unit $.40 $.50 $.70
Contribution per unit $.95 $1.20 $1.65
Units per linear foot of shelf space 6 3 3
Contribution margn per linear foot of shelf space $.158 $.40 $.55
First stock 65 linear feet with the product that has highest CM per linear foot - 20oz bottles of right cola
Next stock 40linear feet with the product that has middle cm per linear foot - 20oz bottles of licious ade
Units available for sale:
Licious ade 12oz cans- 0 cans
Licious ade 20oz bottles - 40/3 = 13 bottles (rouded off to lower whole number)
Right cola in 20oz bottles = 65/3 =21 bottles (rounded off to lower whole number)
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